They then set fire to the church and other shops in the area.
"They started firing as the congregation tried to flee".
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On April 29, gunmen attacked a Protestant church, killing a pastor and four worshippers in Silgadji near Djibo, which was the first attack on a church, France 24 reports.
The attackers then torched the church, and set fire to a shop and two vehicles, in the second attack on Christians in as many weeks in a nation increasingly overrun by jihadis.
Zongo said the attack left the city "filled with panic", according to Reuters.
"People are holed up in their homes, nothing is going on. It's practically a ghost town", he added.
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The other two hostages from the US and South Korean have not been named.
The attack came two days after French special forces freed four foreign hostages in the north of the country in an overnight raid that cost the lives of two soldiers.
Burkina Faso attracted worldwide attention last week after two French soldiers died in an overnight military raid that freed four hostages, including an American woman. The hostages are now safe and are making their way to France.
The attacks comes as the authorities of Burkina Faso have launched a massive anti-terrorist operation in the eastern and central-eastern regions of the country.
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The United States announced earlier in May that it would double down on efforts to support the government of Burkina Faso, and would provide Burkina Faso's military with guidance on how to better train and manage troops and increase security around key targets.